Enterprise: The Chancellor's Vision

Few can doubt that Britain's post-war history of economic decline - when we suffered high unemployment, poor educational standards and low levels of business creation - arose from poverty of aspirations.

For too many young people the British work ethic was insufficiently strong, the ambition to learn too weak, the enterprise ethic too narrowly held. For decades Britian - the home of the creative genius of the industrial revolution - had no-go areas for enterprise.

Even in 1997, one British family in six had no one working. Despite Mrs. Thatcher's enterprise culture, still only a highly entrepreneurial few thought it worthwhile to take the risk of starting a business.

Move forward to 2006 and new businesses are starting up at the rate of 3,500 a week, with now 575,000 more businesses in Britain than in 1997.

But while our levels of entrepreneurship exceed those of other major European economies, we know we still have a long way to go, both in education and in business, to match America. And we are determined to bridge that gap, encouraging young people with ideas, insights and drive to think of a business career, as we support a new generation of risk-takers.

Why is enterprise so much more important to the Britain of 2006? Because we recognise that in the new and changed global economy, the race is to the top, notto the bottom. We know that only those advanced industrial countries that encourage the skills, inventiveness and creative talents of the young will meet and master the challenge from Asia. And we understand that nations and even continents will rise and fall depending on their ability to raise their game.

With China and India now producing four million graduates a year, and more computer scientists and engineers, we also know that a small country like Britain cannot now afford to waste the talent or potential of any youngster.

We have already set up the Graduate Entrepreneurship Council to help graduates set up their own companies, and to encourage university-business link ups.

I have also set out further measures to boost enterprise and published a report on the contribution the creative industries can make to the future of the economy along with details of enterprise scholarships so that UK students can learn fro the best of enterprise in the United States and elsewhere.

From the barren post-war decades of economic retreat, the new world of globalisation is, in my view, made for Britain. Our country leads the world for economic and political stability, the foundation of success in the new global economy. We lead in our global reach and our open trade policy - the precondition for global success - and are second to none for our history of scientific invention and creativity, one of success in the great drivers of advanced industrial countries.

If these inherent advantages and assets are matched by a stronger work ethic and a deeper enterprise culture, Britain is well set for the future.

This article appears with the kind permission of the author and associated newspapers.